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An analyst who needs to model and forecast a company's earnings for the next three years would be least likely to: A. use common-size financial
An analyst who needs to model and forecast a company's earnings for the next three years would be least likely to:
A. use common-size financial statements to estimate expenses as a percentage of net income.
B. assume that key financial ratios will remain unchanged for the forecast period.
C. examine the variability of the predicted outcomes by performing a sensitivity or scenario analysis.
Hint: An earnings forecast model would typically estimate expenses as a percentage of sales.
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